Recognizing and Minimizing Tort and Regulatory Risk Plan

Recognizing and Minimizing Tort and Regulatory Risk Plan

Law 531

Recognizing and Minimizing Tort and Regulatory Risk Plan

Regulatory risks are identified and managed through preventative, detective, and corrective measures. Alumina Inc was negligent five years ago during an Environmental Protection Agency (EPA) evaluation, which they were in violation of environmental norms. Alumina Inc breached their duty of care where they have an obligation not to cause risk of harm. Alumina Inc is an expert in water treatment because they are located near a lake; therefore competence is measured against a higher professional standard. Now Alumina Inc is facing the consequences of the unintentional tort.

When Alumina Inc decided to build their manufacturing facility by Lake Dira, they assumed the risks of monitoring the cleanliness of the lake. Even if due diligence is taken to make sure the PAH levels are as prescribed, Alumina Inc could still be liable for damages if someone becomes sick or injured. Strict liability states that even though Alumina Inc is not negligent, anyone injured from lake contamination could claim damages against the company. Part of risk of running a business involves understanding the foreseeable consequences. Alumina Inc needs to make sure that they have a plan in place to make sure, they protect themselves from these consequences.

Alumina Inc has a duty and a responsibility to monitor the PAH levels in Lake Dira per the EPA and Clean Water Act (CWA). These two agencies monitor Alumina Inc to ensure they are compliant with governmental regulations to protect the surrounding environment. If Alumina Inc was consistently monitoring Lake Dira’s PAH levels, they could have avoided any violations and the future consequences. Either they were unintentionally negligent or they knew about the high PAH levels but chose to ignore them. Either way, this is the reason why regulatory agencies intervene.

What Alumina...